T. Rowe Price Group, Inc.

Daniel, and I will be your conference facilitator today. Welcome to T. Rowe Price's third quarter 2026 earnings conference call. All participants will be in listen-only mode until the question and answer period. I will give you instructions on how to ask questions at that time. As a reminder, this call is being recorded and will be available for replay on T. Rowe Price's website shortly after the call concludes. I will now turn the call over to Linsley Carruth, T. Rowe Price's Director of Investor Relations.

Hello, and thank you for joining us today for our third quarter earnings call. The press release and a supplemental materials document can be found on our IR website at investors.drowprice.com. We'll start our call with our chair and CEO, Rob Sharps, and CFO, Jen Dardis, discussing the company's results. Dee Sawyer, our head of global distribution, will then share an update on our ETF, SMA, and model businesses. Then we'll open it up to your questions, at which time we'll be joined by our president, co-head of global investments and CIO, Eric Veiel. We ask that you limit it to one question per participant. I'd like to remind you that during the course of this call, we may make a number of forward-looking statements and reference certain non-GAAP financial measures. Please refer to the forward-looking statement language and the reconciliations to GAAP in the supplemental materials, as well as in our press release in 10Q. Discussions related to the funds is intended to demonstrate their contribution to the organization's results and are not recommendations. All investment performance references to peer groups on today's call are using Morningstar peer groups and for the quarter that ended September 30th, 2026. Now I'll turn it over to Rob.

Thank you, Linsley. I'm joined today by Dee Sawyer, head of global distribution, who will share an update on our ETF, SMA and model portfolio businesses, areas where we are investing, innovating and gaining traction. Before we hear from Dee, I'll share a few thoughts on the quarter and then Jen Dardis, our chief financial officer, will take you through our financial results. We ended the quarter with $1.86 trillion in assets under management and $28.3 billion in net outflows. Looking ahead, we anticipate some sequential improvement in net flows in the fourth quarter, with outflows moderating from third quarter levels but remaining elevated. Regardless, we're making notable progress with improving performance, innovative product launches, and continued advancements across our partnerships. Let me start with investment performance. Over 50% of our fund assets beat their peer groups on the 1, 3, and 10-year time periods. The 5-year time period fell short of that mark, with 44% of fund assets outperforming. Results improved notably from last quarter for the 1 and 3-year time periods. Particularly in equities, with 48% and 58% of fund assets outperforming their peers, respectively. For the 5 and 10-year, 37% and 60% outperformed. Our large-cap growth suite delivered a strong quarter, with all three funds beating their peer group, reversing the underperformance we saw in the prior quarter. U.S. equity research remains a top quartile performer for the 3, 5, and 10-year time periods, and the one year just missed coming in at the 26th percentile. Both capital appreciation and global stock beat their peer groups across all reported time periods. Capital appreciation is top decile for the 5 and 10 year and global stock is top decile for the 1 and 10 year. Fixed income performance remains strong with 85, 74, 76, and 82% of fund assets beating their peer groups for the 1, 3, 5 and 10-year time periods, respectively. Global multi-sector, floating rate and several municipal strategies stood out. In target date, 80% of assets outperformed their peers for the 1 and 3-year time periods, 55% for the 5-year and 98% for the 10-year. Nearly all the target date assets outperformed in the third quarter, Driven by the retirement glide path's higher relative equity exposure, a tactical underweight to bonds, and our allocation to inflation mitigating assets. Shifting to alternatives, performance across OHA strategies was strong in Q3. Among the underlying drivers was strength in software exposures, both public and private. This dynamic contributed to strong performance across private credit, both in institutional and wealth, and CLOs, as well as positive relative performance in loans and multi-asset credit. Distressed and opportunistic funds also generated gains driven by positive idiosyncratic developments. In addition to strong investment performance, there were a number of other highlights from the quarter. In August, we announced that we plan to acquire FM Investments, with a closing expected early in 2027. FM is a fixed income asset manager and ETF specialist with approximately $20 billion in assets under management across exchange traded funds, institutional separate accounts, and both taxable and municipal separately managed accounts. With this transaction, we will enhance our fixed income platform and accelerate growth in our ETFs and solutions. This is consistent with our overall approach to M&A. Extending our capabilities with limited overlap, strengthening our competitive position, and adding top talent. We're also growing our fixed income franchise organically, where we had another strong quarter with $3.4 billion of net inflows. Earlier this year, we extended our platform with two T. Rowe Price managed CLOs. The most recent CLO, which closed in August, issued approximately $400 million in notes. We are also making progress through our strategic partnerships. As part of our relationship with Aspita, we launched the first index strategy in Aspita's fixed index annuity suite, which extends our investment capabilities into the growing retirement and insurance marketplace. We also reached several milestones in our collaboration with Goldman Sachs. We launched two interval funds in the quarter. The T. Rowe Price Goldman Sachs Private Markets Fund launched Early in the quarter and is now available on several external platforms. The All Equity Access Fund received SEC approval in late August and launched in early September. The fund brings together our public equity research and late stage venture investing experience with Goldman Sachs Asset Management's institutional private equity expertise. We added a sixth model, the Goldman Sachs T. Rowe Price Dynamic ETF and Alts Portfolio, Which includes the Private Markets Interval Fund as a building block. And we continue to build momentum toward the launch of our target date sister series, T. Rowe Price Goldman Sachs Retirement Blend Plus. We have an active pipeline of interested plan sponsors with several progressing toward implementation. The product is operationally ready, and we are working closely with these sponsors to finalize launch timelines. In early October, Robinhood announced plans to bring tokenized versions of actively managed ETFs on-chain for eligible investors outside the U.S. We're pleased that Robinhood has chosen T. Rowe Price's active ETF strategies to be first. This initiative offers a valuable opportunity to learn how tokenization is developing and how investors may engage with established investment strategies in new ways. Being able to explore this opportunity with Robinhood reflects the growing strength of our active ETF capabilities and our commitment to innovation. We're also advancing our use of AI through our strategic relationship with Anthropic. The relationship is expanding our enterprise capabilities by giving portfolio managers and analysts access to cloud and co-work and developers access to cloud code. AI is moving into the core of how we invest. Helping our teams enhance research, synthesize information, and create capacity for the judgment that drives client outcomes. We're moving beyond broad adoption toward AI-enabled workflows with measurable business value across investments, distribution, and operations. Every application is governed by the firm's standards for responsible use and built to keep human judgment and accountability at the center of our work. We also refined our AI leadership model, embedding AI leaders in investments in global distribution and charging T. Rowe Price Labs, our enterprise AI innovation hub, with evaluating and scaling AI across the firm with strong governance and risk oversight. While the environment for active equity is difficult, we are broadening how clients can access our capabilities and investing in the partnerships and technology that will differentiate us over time. I remain confident in where we're headed. I want to thank our associates for their focus and commitment to our clients. And now, Jen will share an update on our financial results.